Brandon's Furniture Store buys a sofa at a wholesale price of $\$97.00$. If the markup rate at Brandon's Furniture Store is $40\%$, what is the markup for the sofa? $\$\ $
Answer: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $40\%$ is equivalent to $\dfrac{40}{100}$ which is also equal to $40 \div 100$. $40 \div 100 = 0.40$ Now you have all the information you need to use the formula above! $0.40$ $\times$ $\$97.00$ $=$ $\$38.80$ The amount of markup on the sofa is $\$38.80$.